Black Market Dollar To Naira Exchange Rate: Dollar Rate Skyrocket, As CBN Interventions Fail

July 22, 2022 Dollar Rate Update: The investors & Exporters window reported foreign exchange suppliers increased the cost of exchanging dollar by 0.94% on Friday in the official forex market, as supply dropped during the trading session.

It was gathered that dollar exchanged at a value of N430, indicating the value of the Nigerian currency depreciated against the United States greenback, having traded for N426 to $1 on Thursday.

The depreciation recorded in the Naira was on the back of supplying dwindling to $57.79 million on Friday. This is a 68% decline in supply rate, considering forex worth $180.83 million was traded during the previous session. It represents a drop of $123.04 million when both days are compared.

What you need to know about CBN’s forex policies

It’s noteworthy that despite several interventions by the Central Bank of Nigeria (CBN) through policies, the naira has not enjoyed a bullish run against the United States dollar.

Recall that the CBN had created a initiative to pay any individual or businesses that exchange dollar for Naira at the official market, instead of going to do business in the black market.

The financial regulator had also banned the sales of dollar and other foreign currencies to the Bureau De Change (BDC) operators, over claims that the BDC members are using the black market to aid money laundering.

The Godwin Emefiele-led Central Bank also threatened to arrest persons behind forex rates aggregator, AbokiFX, forcing the site to stop covering rate movements, after accusing the firm of influencing devaluation of Naira and increasing value of dollar.

What’s the dollar and naira rate in black market?

In the black market, the Bureau De Change operators are demanding for N654 to part with $1, while the peer-to-peer market is around N660.